ZDNet Must Read:
Google's Chrome OS: Will you give up desktop apps?
Google revealed a bevy of noteworthy developments for its Chrome OS. However, the success or failure of the Chrome OS will ride on whether users will give up desktop applications.... Continued »
Category: Wired & Wireless
November 18th, 2009
The Big Question podcast: Handicapping the Verizon vs. AT&T marketing war
In this episode of The Big Question, Jason Hiner, Andrew Nusca and I handicap the entertaining marketing scrum between Verizon and AT&T. Who’s right?
The Big Question is a joint production from ZDNet and TechRepublic.
You can play this 18-minute episode from the Flash-based player at the top of the page or:
Stories discussed in this episode:
- AT&T sues Verizon Wireless, calls map ad “misleading” but doesn’t dispute accuracy (ZDNet)
- Verizon to AT&T: ‘Our ads are true and the truth hurts’ (ZDNet)
- Memo to AT&T: When you’re in a hole, stop digging (ZDNet)
- AT&T: The iPhone’s anchor (ZDNet)
- Verizon Droid: Doesn’t match iPhone, but brings Android out of beta (TechRepublic)
- With Motorola Droid, Verizon puts doubts about Google Android platform to rest (ZDNet)
November 13th, 2009
Android army keeps growing as Dell enlists; Will the mobile OS war follow PC history?
Google CEO Eric Schmidt has said that “Android adoption is literally about to explode” and it’s hard to argue with that assessment given the troops that are amassing behind the mobile operating system. Dell is the latest to enlist with an Android smartphone and Motorola’s Droid is the highest profile device, but it’s the total sum of converts that’ll make 
the difference.
Android is beginning to swamp the mobile market and it’s going to be very interesting to see if other operating systems—namely Apple’s iPhone OS and RIM’s BlackBerry OS—can hold or gain market share as Google’s OS infiltrates multiple devices. In many respects, the Android strategy to be on every device is similar to the early days of the Windows-Mac war. Microsoft enlisted multiple PC partners to swamp Apple to make Windows the dominant operating system. Will there be a mobile replay here with Android? Operating systems that are tethered to one device are going to be swamped from all sides by Android’s army. It’s hard to envision 2010 and not call it the year of the Android device.
“You have all the necessary conditions. You have the vendors, you have the distribution, and so forth,” said Schmidt on Google’s third quarter earnings conference call last month. Simply put, Android is amassing all the ingredients that Microsoft used with Windows way back when.
Meanwhile, the Android army is beginning to advance. To wit: Dell (right), Motorola, Garmin, Verizon, HTC, Barnes & Noble, LG and Samsung are just a sampling of companies making bets on Android. As these companies roll out what is likely to become hundreds of devices over the next few years at least a few of them will be hits. Motorola is expected to ship 1.3 million Droid devices in the fourth quarter, according to Morgan Keegan analyst Tavis McCourt.
Special report: DROID takes on iPhone
- With Motorola Droid, Verizon puts doubts about Google Android platform to rest
- FAQ: Android 2.0 and Droid
What’s also notable is how Android is playing overseas. For instance, Dell isn’t playing ball in the U.S. It’s going right to where the growth is: Asia and Brazil. Perhaps Dell will flop as a smartphone provider, but it won’t go down without advancing Android’s cause somewhat.
All of these troops make big predictions for Android market share entirely plausible. Gartner said that Android only had 1.6 percent of smartphone platform market share in the first quarter. However, the picture in 2012 will look dramatically different.
Gartner analyst Ken Dulaney noted at the research firm’s IT Symposium last month:
Expected improvements in the Android environment backed by the power of not only Google’s search engine, but from their other up and coming consumer (for example, maps) and enterprise products should make this a dominant platform. Potentially the integrative, open environment of Google could easily top that of the singular Apple.
By 2015, Gartner predicts there will be three dominant platforms and several niche players. Given the army that Android is amassing it’s realistic to predict that the open source mobile OS will make the cut.
Also: Android opens doors for Google’s next-gen search, ads and tools
November 13th, 2009
Dell launches Android smartphone; Inks China, Brazil carrier deals
Dell officially hatched its grand smartphone plan and it’s focused on emerging markets and the Android operating system. The company confirmed its plans to launch smartphones in China and Brazil.
In a statement Friday, Dell said it will distribute its Mini 3 smartphones through China Mobile, the wireless behemoth in China. In Brazil, Dell has inked a deal with Claro, which has more than 42 million customers.
The strategy makes a lot of sense. In the U.S. Dell would face a crowded field. In so-called BRIC countries (Brazil, Russia, India and China) the growth pie is big enough to support multiple players and new entrants such as Dell. For instance, China Mobile has 500 million customers.
Gallery: Dell calls on its new Mini 3 smartphone
The other notable wrinkle here is that Dell’s Mini 3 smartphones run on Android. The Mini 3 will be available in late November on China Mobile and by the end of the year on Claro. In a blog post, Dell said:
With Android, we’re designing these initial Mini 3 phones to provide power, flexibility and customization to both our customers and to carriers around the world.
It remains to be seen whether Dell can be a smartphone contender, but if it’s going to be successful the emerging markets are the best place to start. Indeed, Ron Garriques, president of Dell’s consumer group, is familiar with emerging market turf since he led Motorola’s efforts abroad.
Dell said the moves solidify its “continued expansion into mobile Internet products.” Dell already has a bevy of netbook deals with various carriers around the world. Rumors of Dell’s move into smartphones have circulated for months. Dell CEO Michael Dell talked about the company’s smartphone plans on an earnings conference call in August.
Also see: Dell alleged smartphone move into China: Not as crazy as it sounds
And the images:
October 29th, 2009
Sprint loses money, more subscribers in third quarter
Sprint Nextel continues to lose money and subscribers.
The company said Thursday that it reported a third quarter net loss of $478 million, or 17 cents a share. That tally was 3 cents worse than Wall Street expectations. Revenue was $8 billion, down 9 percent from a year ago.
In addition, Sprint lost 135,000 retail subscribers (statement). However, Sprint said that its year-over-year post paid gross additions were a sign the company was headed in the right direction. Sprint has been saying that for a few quarters, but it’s unclear how long the Wall Street patience will last.
The big question: Is this blip something for Sprint to really get excited about?
As for the outlook, Sprint said it expects that subscriber losses should improve in 2009 from 2008. The company also expects sequential subscriber improvement.
By the numbers:
- Post-paid wireless churn in the third quarter was 2.17 percent compared to 2.15 percent a year ago and 2.05 percent in the second quarter. The uptick was due to “seasonality and heightened competition.”
- Prepaid churn—Sprint owns Boost Mobile—was 6.65 percent, down from 8.16 percent a year ago and 6.38 percent in the second quarter.
- Wireless service revenue in the third quarter was $6.3 billion, down 8 percent from a year ago.
- Sprint generated free cash flow of $664 million.
- The company has $5.9 billion in cash, equivalents and investments.
October 28th, 2009
RIM's second Storm: Not enough to erase memories of the first
I lug around the Research in Motion’s BlackBerry Storm and find it to be a device that can be useful but generally annoys you a little bit every day. The touch screen doesn’t quite work right, the browser is iffy and there are numerous little flaws that bum you out over time. So after checking out a review copy of the Storm 2 I really only had one question: Could the Storm 2 erase the taste the first Storm left in my mouth?
The short answer: No.
I’ve made my decision about the Storm before I took Storm 2 for a spin. There’s little chance that I’ll get a BlackBerry the next go round with Verizon Wireless. I’m all about the latest iteration of the Droid when it comes around. But the second version of the Storm, which is available today, was at least worth a look and I was open to going another round. If RIM hit a home run maybe I’d forget the first flawed version.
Andrew Nusca: With BlackBerry Storm2, RIM wins the battle but loses the smartphone war [review]
Rest assured, RIM improved a lot with the Storm 2. The display is nicer, the virtual keyboard works well and overall it feels snappier (review).
What I liked:
- The keyboard was much better.
- The Wi-Fi option was nice to have.
- Overall, the OS seemed more tuned.
Simply put, if I was new to the Storm the latest incarnation would be a worthwhile device. But here’s the rub with smartphones: You don’t often get a second chance. If the first rollout is flawed you never quite get over the experience. Add it up and the Storm 2 not only faces competition from the iPhone but the bevy of Android devices lining up at Verizon Wireless.
Also: RIM BlackBerry Storm2 coming to Verizon on Oct. 28; $179
Verizon preps fourth quarter device barrage; Droid will ’stimulate demand’
October 26th, 2009
Google Voice extends voicemail features to mobile users
You may have heard about all of the cool features that come with Google Voice, the one-number-for-life service that allows you to transfer calls to any phone. But for those who aren’t willing to start over with a new phone number, Google is offering the next best thing to actual number porting (which it’s not offering at this time.) (Blog entry, Techmeme)
The company is opening the voicemail part of Google Voice to the masses, allowing people to route unanswered phone calls into the Google Voice voicemail service. Yes, you can still access your messages through your phone - but now you can also get them in a Web interface that allows you to save audio files of the messages, forward them or even set up customized greetings for specific callers.
Google also is touting its voicemail transcription service, which allows users to receive transcripts of the messages online or via SMS text. As much as I’m a fan of Google Voice, the transcription service leaves a lot to be desired. Once in a while I can make out keywords in a transcription but for the most part they make no sense at all.
Consider this excerpt from a recent voice message I received:
“Hey, Just wanting to touch base with you. Gosh, I think the last time I saw you was (pause) was it this year or was it last year? I know I ended up running into you at some demo event in the city and you had just relocated back from DC to here.”
This was the transcript from Google Voice:
“Hey, Just wanting to touch base with you, fax I think the last time I saw you with the ZIP this error was it last year. I know I ended up my name into you. It’s Sam demo event here in the city. Anyway, I just relocated back from the C T here.”
I try to give Google very little grief about the transcription service because 1) it’s just an added bonus to a service that I very much like and 2) it’s largely been a service that’s still being refined as the company slowly rolls out invitations. But if Google is going to start offering the voicemail service more broadly, it really needs to step up its game on that transcription service.
As usual, Google has put together a fun video to explain how it works.
Previous coverage:
October 22nd, 2009
AT&T cuts churn rate; Activates 3.2 million iPhones; Touts network upgrades
AT&T’s bet on the iPhone continues to work well. The company reported a better-than-expected third quarter, delivered post paid churn of 1.17 percent (a low for AT&T), activated 3.2 million iPhones and boosted data revenue by 33.6 percent.
The telecom giant on Thursday delivered net income of $3.2 billion, or 54 cents a share, on revenue of $30.9 billion, down from $31.3 billion a year ago. Wall Street was expecting earnings of 50 cents a share. If you’re an AT&T customer you may be more interested in AT&T’s update on its infrastructure improvements. The company added that dropped calls declined by 12 percent.
As usual, AT&T was powered by its wireless unit, which represents 44 percent of total sales. Among the key wireless data points (statement, financial supplement, quarterly overview, presentation):
October 22nd, 2009
CIO Sessions: Verizon Telecom's Shadman Zafar on Internet TV
Shadman Zafar, CIO of Verizon Telecom talks to ZDNet correspondent Sumi Das about the company’s promise to deliver the Internet to television with its new Fios platform. The service will include social media widgets like Facebook and Twitter. Zafar describes the company’s approach to innovating in an economic downturn and where he stands on the net neutrality debate in Washington.
October 19th, 2009
Sprint acquires iPCS; Deal ends legal spat
Sprint Nextel said it will acquire iPCS for $831 million in a move that adds almost 1 million wireless customers and shelves litigation between the two companies.
In a statement Tuesday, Sprint said the $831 million price tag ($24 a share) includes the assumption of $405 million in debt. Sprint added that it expects to save $30 million a year from the deal and boost cash flow in 2010.
IPCS is a midwestern wireless carrier that sells Sprint service.
The deal, expected to close in the fourth quarter, will end litigation between the two companies. IPCS had argued that Sprint’s 2005 purchase of Nextel violated an exclusivity pact in the territories where it operates. Sprint was planning to divest its iDEN network as a result of the lawsuit.
October 14th, 2009
Wi-Fi Direct connections coming soon; Like Bluetooth, but better
The Wi-Fi Alliance this morning announced that it is nearing completion of a new specification that will allow WiFi devices to connect to each other - devices such as mobile phones, cameras, printers, as well as devices such as keyboards and headphones - and that certification is expected to begin mid-next year.
I know. It sounds an awful lot like Bluetooth. But I suspect that this will be better.
The key here is that these devices will operate on a peer-to-peer basis, instead of linking to each other via the WiFi network. In a statement, WI-FI Alliance executive director Edgar Figueroa said:
Wi-Fi Direct represents a leap forward for our industry. Wi-Fi users worldwide will benefit from a single-technology solution to transfer content and share applications quickly and easily among devices, even when a Wi-Fi access point isn’t available. The impact is that Wi-Fi will become even more pervasive and useful for consumers and across the enterprise.
The new technology will support typical WiFi ranges, which are much greater than Bluetooth, and will be able to tackle bandwidth-hungry tasks, as well. My experiences with Bluetooth have been hit-or-miss - mostly using a mobile phone earpiece, connecting a wireless mouse and transferring files between my Blackberry and laptop.
Funny story: at a tech event recently, I shot a picture on my phone and wanted to upload it to my laptop so I could put it in a blog post. But when I asked my phone (and laptop) to find the other Bluetooth device, I came up with a list of more than a dozen devices within range. Having no idea which of those were mine, I scrapped the file-transfer and just did the photo upload later.
Seeing how WiFi has a broader range and this new specification would allow multiple devices to connect directly with a single device (like an office printer), I imagine the airwaves will become a bit cluttered by devices trying to find each other.
I guess it’s time to start thinking of some cool names for my devices so I can spot them when they’re lined up next to hundreds of others in a crowded office or conference setting.
October 11th, 2009
The T-Mobile-Microsoft Sidekick data disaster: Poor IT management going mainstream
If you’re a T-Mobile Sidekick user who put data, contacts and other items in the cloud we have some bad news for you: Your data is gone…probably forever. With cloud computing increasingly reaching the masses the average consumer will soon be enmeshed in the world of poor IT management. Welcome on board the IT failure express.
T-Mobile depended on Microsoft’s Danger unit to provide data services. Danger’s servers blew and apparently there weren’t backups. Oops. T-Mobile’s forums reveal (Techmeme):
Regrettably, based on Microsoft/Danger’s latest recovery assessment of their systems, we must now inform you that personal information stored on your device - such as contacts, calendar entries, to-do lists or photos - that is no longer on your Sidekick almost certainly has been lost as a result of a server failure at Microsoft/Danger. That said, our teams continue to work around-the-clock in hopes of discovering some way to recover this information. However, the likelihood of a successful outcome is extremely low.
T-Mobile then sends you to an FAQ so you can rebuild your contacts. In a nutshell, Microsoft/Danger can’t recover your data. Granted, it’s only photos, contacts and the rest of your life, but it could have been worse I suppose. Here are a few observations from this debacle:
- Poor IT management is going mainstream. As we rely on the cloud more there will become a day when everyone will have some basic knowledge of IT management. Rest assured, Sidekick customers will know you’re supposed to back up your servers better. Gmail customers may learn a bit about scalability. And TD Bank customers certainly know that you can’t merge systems without a fallback plan if things go awry.
- Cloud is nice. Hybrid may be better. A local backup of data is a necessary backup to the cloud. After all, photos, contacts and other items could be summed up in two words: Your life. T-Mobile’s hybrid approach: Don’t reset your phone.
- These IT snafus will become more public. In many cases, IT failures happen behind the scenes. IT failures usually ding a company’s financial results or operations and there’s a good bit of finger pointing (the consultant, vendor, customer loop). Customer facing applications usually don’t blow up in such spectacular fashion. Today, all applications are becoming customer facing.
- Corporate reputations will be partially be based on IT management skills. The number of IT failures and a company’s reaction to IT screwups will feed into a corporation’s reputation.
IT failures make our little world go around—Michael Krigsman (our IT Mr. Sunshine) even has a blog dedicated to them—and now you’re on the IT failure express too. Welcome.
October 7th, 2009
Dell reportedly on Android bandwagon with AT&T
Dell is reportedly planning to make an Android-based phone for AT&T’s network.
According to CrunchGear, citing a tipster, and the Wall Street Journal, citing “people briefed on the plans,” Dell is making a touch screen phone that will run on Android.
The phone will be similar to one showed off in China in August.
The larger question is whether consumers will be clamoring for a Dell phone. Will Dell be a mobile phone success?
More:
October 6th, 2009
The Android army: Verizon Wireless, Google ink collaboration pact; Google Voice support on tap
Updated: Verizon Wireless and Google said Tuesday that they will partner to co-develop a bevy of Android-based devices. Verizon Wireless also said that it will tightly integrate its network with Google apps—including Google Voice.
The terms of the deal (Techmeme) weren’t disclosed, but the companies are looking to create innovative devices “pre-loaded with innovative 
applications from both parties as well as third-party developers.” On a conference call, Verizon Wireless CEO Lowell McAdam said the deal will be a boon to mobile customers across the U.S. “Both companies are devoted to bringing the latest applications to third generation and fourth generation networks,” said McAdam, who added that the partnership will enable Google and Verizon to accelerate device development.
Among other notable nuggets from the call:
- Verizon will support Google Voice. McAdam said “the device is either open or it’s not.”
- The Android market will be preloaded on Verizon devices.
- The deal covers phones and netbooks.
- McAdam said new Android devices would be announced shortly with two devices, which were described as the first installment of a multi-year roadmap. There is no hard target for the number of Android devices, but there will be a wide range of them.
- There were some subtle hints about ad revenue, but it’s unclear what the Google-Verizon split is. Safe to say it’s likely favorable to Verizon.
Credit: Cybermen from Dr. Who, BBC.
A tight partnership between Verizon and Google is clearly aimed directly at the AT&T/Apple/iPhone juggernaut. Verizon and Google are forming an Android army designed to tackle a common foe. Android is aiming at the iPhone in terms of applications, usability and the sheer number of devices. And Verizon is looking to hit AT&T in the chops by wrapping itself in network reliability and open devices.
Google CEO Eric Schmidt took aim at AT&T indirectly and did some of McAdam’s bidding. “It’s an absolute fact that Verizon’s network is the best by far,” said Schmidt. “We had known about that reach. We didn’t know that they’d take a lead in openness. This is a network engineering company that makes it work and makes it scale. This is a major milestone in the Android platform. ”
The two parties started talking 18 months ago, executives said.
According to the companies, the aim is to develop unique applications and get them to consumers quickly. The two companies also say they are committed to collaborating for years to come.
For Verizon Wireless, which historically has trailed other carriers with bleeding edge devices, the deal with Google could help it be more of a leader in the buzz department. Meanwhile, a tight partnership with Google should give Verizon Wireless more clout with the developers it is trying to woo.
And for Google the pact with Verizon Wireless means there will be more Android devices in the field.
In the end, this Google-Verizon partnership is really about economies of scale. Google wants to scale Android and mobile search. Verizon wants a developer footprint and cutting edge applications.
My take: It’s a bit hard for me as a Verizon Wireless customer to not be excited a bit about this deal. Typically, there has been a trade-off with Verizon Wireless between cutting edge devices and network reliability. Given the way my phone is used (mostly as a tethered wireless modem) I went with the reliability. Meanwhile, I was seriously leaning toward the Android platform for my next mobile phone, currently a BlackBerry Storm, and checking out the new Motorola devices. As a Verizon customer, the Google partnership is well timed. The proof will be in the execution, but my initial take is positive. Given the joint enemy, Apple/AT&T, it’s in the best interest of both parties to follow through.
Verizon made sure that it said that the Google deal doesn’t mean that it isn’t chummy with other partners. After all, RIM and Verizon are tight. However, you have to wonder whether this Google deal takes any potential iPhone partnership off the table.
More:
- Verizon Wireless to developers: ‘Our success is tied to you’
- Could Apple really dictate iPhone terms to Verizon Wireless?
- It’s official: Google and Apple are competitors (especially in mobile)
- Motorola bullish on Android, Motoblur rollout in 2010
- Cliq builds on iPhone idea, pushes away from smart”phone” category
- Motorola: Android devices get us back in smartphone game
October 5th, 2009
Verizon reshuffles units as operating chief retires
Verizon is reshuffling its units as chief operating officer ahead of the retirement of chief operating officer Dennis Strigl.
Among the moving parts (statement):
- Verizon’s two wireline businesses—Verizon Telecom and Verizon Business—will become one unit Verizon Wireline. The aim will be to optimize performance. Both units are more mature businesses relative to Verizon Wireless.
- Strigl will retire.
- Verizon’s two units—Wireline and Wireless—will report to CEO Ivan Seidenberg.
- Lowell McAdam, CEO of Verizon Wireless, remains in his role, but he gets a new chief operating officer. Daniel Mead, president of Verizon Telecom, will become operating chief of Verizon Wireless. Mead replaces Jack Plating, who is retiring as chief operating officer of Verizon Wireless.
- John Stratton, chief marketing officer for Verizon, is now chief marketing officer for Verizon Wireless and reports to McAdam.
- Fran Shammo, vice president of Verizon Business, is now president of Verizon Wireline.
- Richard Lynch, Verizon CTO, and Shaygan Kheradpir, Verizon chief information officer, now report to Seidenberg.
September 30th, 2009
The month ahead: Can Windows 7 close the Vista flop chapter?
ZDNet correspondent Sumi Das and senior editor Sam Diaz share the early word on the highly anticipated OS set for release in late October. Diaz also previews upcoming conferences, including CTIA, and considers the question where does Web 2.0 go from here?
September 25th, 2009
RIM signals price war potential; Fallout could be substantial
Research in Motion’s second quarter sounded alarm bells and may have signaled a smartphone price war, according to analysts. The company’s contention that it would target a ‘more mainstream’ market was viewed as a sign that average selling prices would fall for multiple vendors.
The scenario for the fourth quarter outlook for smartphone makers is clear: The vendor that is able to hold pricing wins. The problem: Buzz and mindshare may be highly overrated when it comes to maintaining smartphone prices. The good news: What’s bad for vendors may be good for you—especially if $99 becomes the new $199 for smartphones.
RIM delivered a dud of a quarter where fiscal second quarter fell short of Wall Street estimates as did the third quarter outlook. As reported, RIM was hammered in afterhours trading and shares are falling further on Friday.
J.P. Morgan analyst Paul Coster highlights the fallout from RIM’s quarter:
September 22nd, 2009
FCC's Net neutrality push: Is wireless access different?
The Federal Communications Commission forged ahead with its Net neutrality proposals and invited industry players to comment on six principles. It didn’t have to wait long. The big question: Would Net neutrality regulations hamper the wireless industry?
FCC Chairman Julius Genachowski on Monday outlined six Net neutrality principles including two new ones focused on network management transparency and non-discrimination against content and applications (Techmeme, FCC speech).
The reaction from Comcast, AT&T and Verizon was mixed. To wit:
- Comcast says: “Before we rush into a new regulatory environment for the Internet, let’s remember there can be no doubt that the Internet has enjoyed immense growth even as these debates have gone on. The Internet in America has been a phenomenal success that has spawned technological and business innovation unmatched anywhere in the world. So it’s still fair to ask whether increased regulation of the Internet is a solution in search of a problem.”
- AT&T says: “We are concerned, however, that the FCC appears ready to extend the entire array of net neutrality requirements to what is perhaps the most competitive consumer market in America, wireless services.”
- Verizon also raised the wireless issue, according to CNet News’ Maggie Reardon: “Our customers want an open experience,” David Young, Verizon’s vice president of regulatory affairs. “They want more choices, which is why we allow third-party developers and are providing developers complete access to our network. But our concern is that these new regulations, which apply regulation to the Internet for the first time, could have unintended consequences.”
- The CTIA, a wireless industry group, says: “As a justification for the adoption of rules, the Chairman suggested that one reason for concern ‘has to do with limited competition among service providers.’ This is at the core of our concerns. Unlike the other platforms that would be subject to the rules, the wireless industry is extremely competitive, extremely innovative, and extremely personal. How do the rules apply to the single-purpose Amazon Kindle? How does it apply to Google’s efforts to cache content to provide a better consumer experience? How about the efforts from Apple and Android, Blackberry and Nokia, Firefly and others to differentiate the products and services they develop for consumers? Should all product and service offerings be the same?”
Reading the tea leaves it appears that the big network providers aren’t going to fight a whole lot over landline access. Wireless will be a different story entirely.
And that makes a lot of sense. Think about it: There’s limited bandwidth in wireless; there’s unlimited data plans in theory; and wireless networks aren’t nearly as developed. If the FCC goes too heavy on new regulations there could be unforeseen wireless repercussions. Meanwhile, the FCC’s take on transparent network management requirements may be more of an issue in the wireless industry. Simply put, network management—and making sure there’s enough access to go around—is really the entire game in the wireless industry.
Smart Planet: Net neutrality: When does transparency collide with competitive edge?
September 15th, 2009
T-Mobile and Sprint? Wild-cards abound
T-Mobile is reportedly considering acquiring Sprint in a deal that would create the third largest wireless carrier in the U.S. But there are enough wild-cards to cast doubt on an outright merger.
According to the UK’s Telegraph, Deutsche Telekom, parent of T-Mobile, is looking into a Sprint purchase and has recruited investment bankers to study a deal.
If this sounds familiar it is: T-Mobile has been repeatedly rumored to buy Sprint. But you shouldn’t get too wound up about a deal. Why? Analysts are somewhat skeptical about the timeline for such a T-Mobile-Sprint merger and note there are multiple technology hurdles. None of these hurdles mean a deal couldn’t happen, but there are enough of them to make all parties think twice.
“We still view reports regarding M&A activity surrounding Sprint Nextel with a grain of salt, if for no other reason, than the numerous previous instances of such rumors in recent years,” says Stifel Nicolaus analyst Christopher King.
Simply put, A T-Mobile-Sprint merger isn’t a slam dunk to happen.
Here’s a look at the moving parts:
September 10th, 2009
Motorola's big Android bet kicks off
Updated: Motorola on Thursday is expected to lay its Android chips on the table in the form of new devices that are designed to turn around the company.
As most folks know, Motorola has struggled in recent years. Its handset business has been a wreck and Sanjay Jha, co-CEO of Motorola, has had to revamp the company’s mobile portfolio. The biggest bet by Jha: Become the biggest supporter of the Android operating system. In July, Jha said Android will put Motorola back into the smartphone game.
A year ago, Motorola outlined its Android plans. A lot is at stake: For Motorola, the future of the handset unit—not to mention any possible spin-off—rides on the Google-created Android operating system. For Google, a wave of Android devices are about to hit the market. Motorola-Google could be the duo that gives Apple’s iPhone a run. So far, few other devices have come close to Apple’s creation.
Jha will be delivering the keynote at GigaOm’s Mobilize conference later today. Sam Diaz will be on scene and Motorola will Webcast the keynote live. Jha is also likely to talk up Motorola’s Android devices at a Deutsche Bank conference Sept. 14.
In a nutshell, Motorola will be a key cog in a year’s worth of Android devices. Also: Android bolsters its app market as device lineup swells
Piper Jaffray analyst Michael Walkley sums it up:
Our checks indicate two different Android smartphones will launch in the near future. We anticipate one model will launch for T-Mobile with a separate form factor launching for Verizon. Finally, we believe another unique product will launch for AT&T in Q110, and we anticipate this model could sell to several global carriers, including the Chinese market in time for Chinese New Year.
Device design to go along with Android will matter for Motorola, but another key theme is marketing. Can Motorola go toe-to-toe with Apple on marketing?
Global Equities analyst Trip Chowdhry writes:
Contacts have seen the new Motorola Android Phone, and all feel the phone is extremely well designed, and probably may be a winner. Contacts tell us that it is slimmer than iPhone, capacitive touch screen seems more precise than iPhone and feels faster than iPhone. The native processing of code on Motorola is much faster than anything out there.
The rub: Motorola has to market the device correctly. Chowdhry guesses that Motorola will spend as much as $70 million on marketing. A year from now, Motorola will either be busy restoring its status as a mobile handset leader or just another company that doubled down on a technology and lost.
Update: Here’s Sam’s live post on Jha’s talk along with photo gallery and the video feed of the keynote:
Update 2: Motorola has announced that the Cliq is coming to T-Mobile for the holidays. It looks like a good season for smartphones. Here’s the statement.
More: It’s official: Google and Apple are competitors (especially in mobile)
September 10th, 2009
Worrywarts fret about Apple's iPhone units for the September quarter
As Apple heads to the end of its September quarter prognosticators are coming out of the woodwork to gauge the state of iPhone supply and demand.
The handicapping picked up in earnest following Apple’s iPod event. Apple launched a new nano with a camera and a few other updates, but the big story was the return of Apple CEO Steve Jobs to the stage. However, the tidbit that got Wall Street’s attention was Apple’s slide showing that 30 million iPHones have been sold.
That tally prompted a few analysts to question whether iPhone sales were lagging projections. Keep in mind that Apple’s iPhone shipments are like Google’s paid click data: Every tick is analyzed and then overanalyzed.
Oppenheimer analyst Yair Reiner wrote in a research note:
Larry Dignan is Editor in Chief of ZDNet and Editorial Director of ZDNet sister site TechRepublic. See his full profile and disclosure of his industry affiliations.
For daily updates, follow Larry on Twitter.
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